As I’m writing this post the mainstream media is telling me that Gold, when priced in its globally quoted, currency is trading at $1589.50 an ounce. In recent times when priced in US Dollars Gold has been tarnishing somewhat (and I used to think that it was only Silver that tarnished). Compared with the February 2013 average it has fallen in price by 2.3% and compared with the March 2012 average it has fallen by 5.0%. If you’re an Investor paid or spending in US Dollars then these are probably relevant numbers however as a UK Investor the numbers are bordering on being meaningless. Let’s therefore have a look at what is happening to Gold when priced in Pound Sterling. If you’re interested in history the
last update of this metric was in January 2013.
The chart below shows the Nominal Monthly Gold Price in £’s since 1979. The key Nominal Gold metrics are:
- The Nominal Gold Price is currently £1,054.16 which is 0.3% above the January 2013 Price of £1,051.35.
- Year on Year Nominal Gold Prices are only 0.4% below the March 2012 Price of £1,057.94.
Click to enlarge
In contrast with US Dollar Investors we can see that UK Investors are just not seeing price falls. This is caused by Sterling devaluing against the Dollar at a rate pretty close to the fall in Gold Prices when measured in its globally quoted currency.
